« West Virginia: arguments in case strict disclosure requirements for political ads | Main | Conservative 527 group fails to live up to its expectations »

Is Catalist an end-run around campaign finance laws?

The New York Times reports: [Harold Ickes] is president of Catalist, a for-profit databank that has sold its voter files to the Obama and the Clinton presidential campaigns for their get-out-the-vote efforts. With his equity stake in the firm, Mr. Ickes stands to benefit financially no matter which candidate becomes the Democratic nominee.

In creating Catalist, Mr. Ickes, who was deputy chief of staff in the Clinton White House, has formed a rare entity on the political scene, a for-profit limited-liability corporation that allows wealthy Democratic donors to help progressive organizations and candidates by investing in the company. And if Catalist, which has data on 230 million Americans, is successful as a business, these donors-turned-investors stand to reap financial returns from using their money to help elect Democrats.

But some campaign finance watchdogs say they wonder whether Catalist was established not so much to make money but to find a creative way to allow big-money liberal donors to influence the election without disclosing the degree of their involvement or being subjected to other rules that would govern spending by an explicitly political organization.

Catalist has raised over $11 million in venture capital, including more than $1 million from the billionaire financier George Soros, according to his aides. It also counts on such large unions as the Service Employees International Union and the A.F.L.-C.I.O., to buy its products and create revenues. And it plans to be the go-to source for voter data for a broad swath of groups often aligned with Democrats — like the Sierra Club, Emily’s List and Clean Water Action — as they embark on ambitious get-out-the vote efforts this fall. -- Clinton Aide’s Databank Venture Breaks Ground in Politicking

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)